BIZ DESK
The domestic benchmark indices ended Monday’s session with a slight decline as investor caution took hold ahead of the US Federal Reserve’s policy meeting scheduled for later this week. The market, which had been on an upward trajectory, saw profit booking, particularly in IT and auto stocks. Despite the downward pressure, strong domestic consumption, buoyed by the recent GST overhaul, helped limit the losses.
The Sensex closed at 81,785.74, a decrease of 118.96 points or 0.15%. The 30-share index opened flat at 81,925.51 and traded within a range, touching an intraday high of 81,998.51 and a low of 81,744.70. The Nifty also ended lower at 25,069.20, down 44.80 points or 0.18%, snapping its eight-day winning streak.
Analysts stated that while a 25-basis point rate cut from the US Fed is largely priced in, the market is awaiting guidance on the future rate path to determine the trajectory for bond yields. They also noted that optimism around new trade deals and an expected earnings recovery in the second half of FY26 is helping to support investor confidence.
Sector-wise Performance
The market saw a mixed performance across various sectors. The Nifty Fin Services and Nifty Bank indices showed positive momentum, closing higher by 0.11% and 0.14% respectively. However, Nifty IT, Nifty FMCG, and Nifty Auto closed in negative territory, with the Nifty IT index experiencing profit booking after its recent rally.
Broader markets, however, displayed positive momentum, with the Nifty Small Cap 100 surging 0.76% and the Nifty Midcap 100 jumping 0.44%. The Nifty 100 closed flat.
Top Gainers & Losers
The top losers from the Sensex pack were Asian Paints, Mahindra and Mahindra, Titan, Infosys, Sun Pharma, TCS, and Tech Mahindra. Meanwhile, Bajaj Finance, Eternal, L&T, and Adani Ports were among the stocks that settled higher.
Market Outlook
Analysts believe the market took a breather as the Nifty closed below the 25,100 mark. A decisive breakout above the 25,150 level could lead to a rally towards the 25,300 zone. However, given the recent upward trend, some profit booking at higher levels is expected. The recommended strategy for investors is to “buy on dips.”